Sustainable development toward sustainable enterprise

Abstract: The concept of sustainable development is inseparable in the business world. In that term, there are three aspects, namely economic, social, and environmental that must be balanced with each other. It is hoped that this concept is needed to know by entrepreneurs in starting their businesses. After that, this business is expected to become a sustainable business that can survive to face the challenges. Mediation input is given in the form of entrepreneurial orientation which can accelerate the creation of sustainable businesses, thus there is a correlation between sustainable development and entrepreneurs. In addition, the entrepreneur variables correlate to entrepreneurial orientation and entrepreneurial orientation has a relationship with sustainable business. In turn, sustainable development, entrepreneurs, entrepreneurial orientation, and sustainable business also deserve further study. This paper examines the relationship between the four variables to the SMEs in Jakarta. Where we want to know how the relationship between the variables of sustainable development with entrepreneurs that aim to achieve sustainable business by mediating entrepreneurial orientation. It also examines the direct comparison between entrepreneurs and sustainable businesses and the relationship between the two variables mediated by entrepreneurial orientation variables. The research data was taken from business operators in Jakarta totaling 245 out of 49 dimensions of the four variables. Data processing is done by structural equation modeling (SEM) through the Lisrel version 8.7 program. Then the calculation results are analyzed based on statistical provisions in getting indications of the relationship between variables. It is found that there is a positive relationship between sustainable development and entrepreneurs, entrepreneurs also have a positive relationship with entrepreneurial orientation, and entrepreneurial orientation has a positive relationship with sustainable business. It turns out that the relationship between entrepreneurs who have gained an understanding of the concept of sustainable development and sustainable business is a significant positive compared to mediating entrepreneurial orientation which remains positive but not significant through the Sobel test that has conducted.

How to cite this paper

 Bawono, A & Rahmana, F. (2021). Sustainable development toward sustainable enterprise.Management Science Letters , 11(2), 657-668.

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